Bitcoin computing power dropped by 25%: the deep impact of power rationing and shutdown of Texas mining pools

As the world's largest cryptocurrency, Bitcoin's network computing power is the key to maintaining its security and stability. However, the recent 25% drop in Bitcoin's computing power has attracted widespread attention. The main reason is that the Texas mining pool in the United States was shut down due to cold current power restrictions. This incident not only had a profound impact on Bitcoin's market dynamics, but also revealed the vulnerability of the cryptocurrency industry in the face of changes in the external environment.

Before we delve into this issue, we first need to understand the basic concept of Bitcoin computing power. Bitcoin computing power, commonly known as hash rate, refers to how many hash operations the network can perform per second. The level of hash rate is directly related to the confirmation speed of Bitcoin transactions and the security of the network. A sudden drop in computing power means that transaction confirmation time becomes longer and network security decreases, which is undoubtedly a warning to investors and users.

The shutdown of Texas mining pools is the direct cause of the decline in computing power. Texas has attracted a large number of Bitcoin miners with its rich natural resources and relatively low electricity costs. However, as global climate change intensifies, Texas' power supply has become more unstable under extreme weather conditions. The recent cold wave event has caused a surge in electricity demand in Texas, tight power supply, and power companies have been forced to implement power rationing measures. Mining pools, as a high-energy-consuming industry, were the first to be affected, and many miners had to temporarily shut down their equipment to cope with the power shortage.

This shutdown is not just a short-term impact. In the long run, it may have a negative impact on the distributed nature of the Bitcoin network. In the design concept of Bitcoin, decentralization is one of its core advantages. However, the centralization trend of mining pools means that once miners in a certain area are restricted, the entire network may be at risk. Therefore, this mining model that relies on a specific region urgently needs to be improved.

It is worth noting that the closure of the Texas mining pool is not an isolated incident. Miners in many countries and regions around the world are facing similar challenges. For example, China's comprehensive ban on cryptocurrency mining in 2021 has led to a large number of miners moving to other countries. Although this liquidity has eased the pressure in some regions in the short term, in the long run, the uneven distribution of miners around the world may exacerbate market volatility. The migration of miners not only affects the hash rate, but may also trigger another scramble for electricity resources, causing new conflicts.

As Bitcoin's computing power declines, the market reacts very sensitively. Bitcoin prices have experienced wild swings, and investor sentiment is extremely uneasy. Many people have begun to question the future of Bitcoin, believing that its function as a store of value is threatened. In fact, investor sentiment often has a direct impact on Bitcoin prices. Heightened market uncertainty has led to investors selling in droves, further driving prices down.

In this environment, the survival of miners has become more difficult. The rising electricity costs and the decline in computing power have put many small miners in a survival crisis. Compared with large mining pools, small miners are at a disadvantage in terms of resources and technology and cannot withstand the drastic market fluctuations. Many small miners are forced to withdraw from the market, leading to an intensified trend of industry concentration. This concentration not only affects the fairness of the market, but also reduces the risk resistance of the entire industry.

At the same time, as a mining powerhouse, changes in Texas' electricity policy have also sparked discussions about renewable energy. Texas miners have begun to seek more sustainable sources of electricity to cope with possible power shortages in the future. Renewable energy such as solar and wind power has gradually become a new option for miners. Although the initial investment is high, in the long run, renewable energy can not only reduce electricity costs, but also improve the environmental image of the mining industry.

In this context, the shutdown of the mining pool in Texas has also prompted people to rethink the future of Bitcoin. Whether Bitcoin can continue to be a mainstream value storage tool depends on the security and stability of its network. In order to enhance the network's risk resistance, the industry needs to explore more solutions. For example, a decentralized mining pool model may be an effective direction. By dispersing miners to more regions, the dependence on a single power supply is reduced, thereby enhancing the resilience of the overall network.

In addition, policy-level support is also particularly important. Governments and regulators should actively promote the healthy development of the cryptocurrency industry. Reasonable regulatory policies can not only protect the rights and interests of investors, but also promote the sustainable development of the mining industry. As the largest Bitcoin mining area in the United States, how to promote the green transformation of the mining industry while ensuring power supply will be an important issue in the future.

In general, the shutdown of the Texas mining pool is not just a simple power supply issue, but also a profound reflection on the overall ecology of the Bitcoin industry. As the industry develops, the relationship between miners, investors and policymakers is also evolving. How to achieve sustainable development of the industry while protecting interests will be a difficult problem to be solved in the future.

In the world of Bitcoin, change is an eternal theme. Every market fluctuation and every policy adjustment may trigger a new reshuffle. As participants, we should not only pay attention to the short-term dynamics of the market, but also have a deep understanding of the long-term trends of the industry. Only by finding opportunities in constant change can we be invincible in this digital currency revolution.

Looking back at the closure of the Texas mining pool, it is not only an electricity crisis, but also a microcosm of the challenges and opportunities facing the entire cryptocurrency industry. In future development, we need to pay attention not only to the price of Bitcoin, but also to the technological, economic and social changes behind it. Only through innovation and cooperation can we stand firm in this wave of digital currency.

This kind of thinking applies not only to Bitcoin, but also to the entire cryptocurrency industry. As technology continues to develop, new challenges and opportunities will continue to emerge. We need to embrace every change in the future with an open mind and a forward-looking vision. Only in this way can we find our own position in this rapidly changing market and create greater value.

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According to 120BTc.COM, the computing power of the Bitcoin network has dropped significantly recently. According to data from Blockchain.com, it dropped from about 600EH/s last Friday to 440EH/s yesterday, a drop of 25%. This is mainly because Texas, the United States, is facing a severe cold wave, which has caused the local power grid regulator ERCOT to require power cuts from the 14th to the 17th to cope with the surge in power demand that may be caused by extreme cold weather.
Power cuts in Texas are the main reason
The Miner Mag previously reported that the decrease in hashrate was mainly caused by Foundry USA
The mining pool’s miner clients reduced their computing power by up to 75EH/s. As of September, more than 28% of the computing power connected to the Foundry mining pool was located in Texas, so the decline in computing power is closely related to the power restriction measures in Texas.
Data from Mining Pool Stats shows that since Sunday, Foundry USA
The hashrate of Bitcoin Pool and AntPool has dropped significantly, with the two largest Bitcoin mining pools accounting for more than 70% of the drop in the total network hashrate.
As of now, with ERCOT announcing the end of the weather alert early this morning, the computing power of Foundry USA Pool and Ant Pool has rebounded to 146.54EH/s and 125EH/s respectively.
In addition to highlighting the impact of local policies on Bitcoin mining activities, this incident also highlights the unique advantage of Bitcoin mining activities that "operations can be easily interrupted." Marathon, one of the three largest mining companies in North America affected by this incident,
Charlie Schumacher, Vice President of Corporate Communications at Digital, said: "Bitcoin miners are in many ways a technological solution for the energy industry. In Texas, they provide a stable base load of energy and can adjust production within minutes to free up energy for other users in an emergency. This is exactly what we have witnessed in recent days."
Texas becomes Bitcoin mining hub after China
It is worth mentioning that Texas has rapidly emerged as a new hub for Bitcoin mining since China cracked down on the mining industry in 2021. Miners believe that their mining activities are beneficial to the Texas power grid because their flexible use of electricity can strengthen the state's power grid: it can reduce power demand during peak periods and increase power supply during low periods.
Texas has attracted several companies with its cheap electricity, grid incentives and deregulated energy markets, including Marathon Digital, Riot Platforms and Iris
Energy, has increased its mining facilities in the state. According to Foundry's September report, American Bitcoin miners using its Texas mining pool accounted for 28.5% of the total US computing power, up from 8.4% in 2021, the highest among all states in the United States.
Bitcoin mining in Texas is also actively involved in electricity demand management. For example, Riot
Platforms received $31.7 million in electricity and demand response credits from ERCOT in August as an incentive for its cooperation in cutting electricity use by more than 95% during the summer heatwave.
Energy also received $2.3 million in energy credits in the same month for voluntary reductions in electricity use.